What is the service/ consulting industry?
The service industry is the third tier of the three-tier economy, after raw materials production and manufacturing. It produces intangible goods; more precisely, it provides services instead of products. Instead of production, this sector focuses on maintenance and repairs, training, or consulting. The service industry entails many small and large businesses like consultancy, transportation services, e-commerce, waste management, health care, entertainment, automotive services, securities, and also other investment services.
As per the CIA World Factbook, the following ten countries have a stupendous service industry by 2018.
- U.S.A: $15.5 trillion
- China: $6.2 trillion
- Japan: $3.4 trillion
- Germany: $2.5 trillion
- United Kingdom: $2.1 trillion
- France: $2.0 trillion
- Brazil: $1.5 trillion
- India: $1.5 trillion
- Italy: $1.4 trillion
- Canada: $1.2 trillion
How important is the service sector for an economy?
If we look at the primary sector, it involves the extraction of raw materials from above and beneath the earth’s surface. On the other hand, the secondary industry facilitates the production of tangible goods from the raw materials extracted by the primary sector. So now, the service sector is responsible for providing intangible goods to the masses.
The Services/ Consulting industry is the largest in the global economy in terms of value-addition. It is a crucial part of advanced economies. Service-based economies are considered to be more advanced than industrial or agricultural economies.
The services/ Consulting industry has been positively impacted by technological advancements globally. So the countries have shifted towards what they call ‘knowledge-based economies.’ It can also outshine competitors by understanding the customers’ needs and wants and satisfy those needs and wants at a minimal cost. Businesses have also adopted new technology to boost production, increase speed and efficiency, and cut down on the number of employees required for operation. It cuts down the costs and improves incoming revenue streams.